The reluctance effect plays on the fear of regret and the seeking of pride, resulting in selling winning stocks too soon and keeping losing stocks too long.

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There are 4 main types of investments:
Shares. 
Property. ...
Cash.
Fixed interest.

Often, people take investment to be about buying and selling shares only. You buy a stock or bond, with the hope that its value will increase over time. Although investing comes with the risk of losing money, should a stock or bond decrease in value, it also has the potential for greater returns than you'd receive by putting your money in a bank account. Thus the common clubbing of investment and share investing.


The reluctance effect plays on the fear of regret and the seeking of pride, resulting in selling winning stocks too soon and keeping losing stocks too long.






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